What effect will recording the estimate of uncollectible

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Shupe Inc. estimates uncollectible accounts based on the percentage of account receivable. What effect will recording the estimate of uncollectible accounts have on the accounting equation?

A.) Decrease assets and decrease liabilities.
B.) Increase Liabilities and decrease owners' equity.
C.) Decrease assets and decrease owners' equity.
D.) Increase assets and decrease owners' equity.

Reference no: EM13137233

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